US Stock Market Today: S&P 500, Dow Jones Decline Amid Jump In Yields
The US stock market witnessed a decline on Thursday, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite extending their decline for the third day, amid a jump in yields and mixed economic data.
Yields and Economic Data Weigh on Market Sentiment
The 10-year Treasury yield rose to around 4.19%, which likely contributed to the selling of shares. The rise in yields came after data on jobless claims fell below estimate. Initial claims for unemployment benefits fell sharply last week, easing concerns at the Federal Reserve and elsewhere about potential weakness in the labour market.
For the week ending Sept. 20, first-time filings came in at a seasonally adjusted 218,000, according to the US Labor Department. That marked a decline of 14,000 from the previous week’s revised level and was well below the Dow Jones consensus forecast of 235,000.
Market Reaction and Key Movers
Minutes into the trade, the Dow Jones fell 129.24 points or 0.28%, S&P 500 declined 0.64%, and Nasdaq slipped 1%. Johnson & Johnson, Apple Inc. and Intel Corp. were among the early gainers, while Tesla Inc., Microsoft Corp., Amazon.com Inc. and Nvidia Corp. were among the drag.
On Wednesday, S&P 500, Dow and Nasdaq had closed at their low with S&P 500 and Nasdaq falling 0.3% and Dow Jones fell 0.4%. The market sentiment was weighed by other set of economic data as well, including the inflation-adjusted gross domestic product, which increased at a revised 3.8% annualised pace.
Expert Insights and Market Outlook
“Active investors will want to see an in-line or lower inflation result, keeping the Fed on pace for two more rate cuts in 2025,” Bret Kenwell at eToro told Bloomberg. “As much as investors want lower rates, a solid economy is more important.”
The US market opened with spot gold falling 0.2% to $3,729.73 an ounce. Crude oil prices fell, with the West Texas trading 1.2% higher at $64.19 per barrel. The Bloomberg Dollar Index rose 0.3%, with the British Pound slipping 0.4% to $1.3388 and the Japanese yen slipping 0.2% to 149.22 per dollar.
Bitcoin, the largest-traded cryptocurrency fell 2.1% at $111,196.04. As the US market continues to navigate through the challenges of rising yields and mixed economic data, Indian investors must stay informed and adapt their investment strategies accordingly.
Implications for Indian Investors
Indian investors must consider the impact of the US market trends on the domestic market. The Indian markets have been closely watching the US market developments, and any significant changes in the US market can have a ripple effect on the Indian markets.
Therefore, it is essential for Indian investors to stay up-to-date with the latest developments in the US market and adjust their investment strategies accordingly. They can also consider diversifying their portfolio to minimize the risks associated with market volatility.
Conclusion
In conclusion, the US stock market witnessed a decline on Thursday, amid a jump in yields and mixed economic data. Indian investors must stay informed and adapt their investment strategies to navigate through the challenges of the US market trends.